BackIHCL Q1: Net loss of ₹280 crore, revenue of ₹ 175 crore
The company missed estimates as Bloomberg analysts had expected the company to report consolidated revenue of ₹242.3 crore and net loss of ₹242 crore
PremiumIndian Hotels Company (IHCL) reported net loss of ₹280 crore in the first quarter ended June 30 compared to a net profit of ₹74 core in Q4 FY20 and profit of ₹6 crore in the year ago quarter. The company’s reported revenue was ₹175 crore down from ₹1101 crore in the previous quarter and ₹1057 crore in the year ago quarter.
The company missed estimates as Bloomberg analysts had expected the company to report consolidated revenue of ₹242.3 crore and net loss of ₹242 crore.
Indian Hotels Company and their subsidiaries are collectively known as Taj Hotels Resorts and Palaces and are recognized as one of Asia's largest hotel company.
Puneet Chhatwal, Managing Director and Chief Executive Officer, IHCL, said, “The global travel and tourism industry was at a virtual standstill in the last three months, which had a big impact on the hospitality sector. While over 50% of IHCL hotels were closed for most part of Q1 due to government lockdowns, we implemented R.E.S.E.T 2020, a strategy to mitigate the impact of COVID-19; and several revenue enhancement and spend optimization measures initiated have started yielding results. We remain confident, given the strength and power of our brand and our market leadership, that we will weather this disruption and emerge stronger."
The company said supported the community in its effort to combat the pandemic by delivering 2.4 million meals to the medical fraternity and migrant workers, and hosting 55,000 room nights for the medical community.
Giridhar Sanjeevi, Executive Vice President and Chief Financial Officer, IHCL, said, “We have taken substantial steps to preserve liquidity. In addition, we are rationalizing all costs and maintaining the highest financial prudence. This will assist us in managing the evolving situation."
The hospitality sector is one of the most affected sectors by this global pandemic, due to which business has seen an all-time low with recovery being rather slow. With the nationwide lockdown starting March 22, the hotel occupancies were severely impacted. COVID-19 has severely impacted the domestic hotel and hospitality sector in Q2 2020, according to JLL’s Hotel Momentum India (HMI) Q2 2020, a quarterly hospitality sector monitor. The hospitality industry reported a decline of 43.5% in Revenue Per Available Room (RevPAR) in H1 (YTD June) 2020 over the same period last year.
All key 11 markets in India reported a decrease in RevPAR Performance in Q2 2020 over the same period last year. Mumbai continues to be the RevPAR leader in absolute terms, despite the decline of RevPAR by 81% in Q2 2020 compared to Q2 2019. Goa saw the sharpest decline in RevPAR in Q2 2020, with a 93.9% drop compared to the same period in the previous year.
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